Seller carry-back on property sale – how to report on taxes?

November 28th, 2011 by admin

I have a situation where I sold a property but took on a “seller note” to carry some of the purchase price. How do I report this on my taxes? Interest income for the interest paid to me and Investment expense deduction for the interest I paid on the note I am still paying for the property? OR can I net the two and only report the net as interest income (more advantageous, but not sure if its right). Thank you.

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